Exhibit 99.1
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|
News Release |
Graham Corporation 20 Florence Avenue Batavia, NY 14020
IMMEDIATE RELEASE
Graham Corporation Reports Record Quarterly Net Income of
$4.4 Million on Sales Growth of 45% for Second Quarter Fiscal 2008
| • |
|
Second quarter sales grew to $23.1 million |
| • |
|
$1.10 earnings per diluted share, up from $0.14 in second quarter fiscal 2007 |
| • |
|
Full fiscal year 2008 revenue expected to be between $80 and $85 million |
BATAVIA, NY, October 26, 2007 — Graham Corporation (AMEX: GHM) today reported revenue and earnings
growth for its second quarter ended September 30, 2007. Revenue for the second quarter of fiscal
2008 was $23.1 million, a 45% increase compared with revenue of $15.9 million in the second quarter
of fiscal 2007. Net income in the second quarter improved to $4.4 million, or $1.10 per diluted
share, compared with $563 thousand, or $0.14 per diluted share, in the prior year period.
Sales growth for the second quarter and first six months of fiscal 2008 primarily resulted from
continued strong demand for ejector systems in the global refinery market, particularly for North
American refinery capacity expansions and revamps to handle changing crude feedstock supplies.
Domestic sales accounted for 67% of the total sales in the second quarter, compared with 41% in the
prior year’s second quarter, while export sales contributed 33% of second quarter total sales.
Ejector systems comprised 53% of total sales in the second quarter compared with 31% in the same
prior year period, while condenser sales contributed 18% in the second quarter and remaining
products contributed 29%. Sales were 52% to the refinery industry, 28% to the chemical and
petrochemical industries and 20% to other industrial applications, compared with 33% to the
refinery industry, 42% the chemical and petrochemical industries and 25% to other industrial
applications in the second quarter fiscal 2007.
Mr. James R. Lines, President and Chief Operating Officer of Graham Corporation, commented, “We had
an exceptionally robust second quarter, favorable product and geographic mix, efficient production
flow and the timing of customer delivery schedules. Over the past fifteen months, we have put more
emphasis on order selection in this current favorable business environment, which in turn has had a
corresponding positive effect on our profitability. Particularly strong this quarter were sales of
ejector systems destined for installation in domestic oil refineries. We have earned customer
loyalty and repeat business by providing our customers with custom-engineered, high quality
products and solutions to meet their demanding needs, all of which we believe has contributed to
our continued ability to win orders.”
Costs and expenses
Gross margin for the second quarter of fiscal 2008 improved to 42.9% compared with 20.3% in the
same prior year period. Gross margin also increased 950 basis points sequentially from the first
quarter of fiscal 2008. Productivity gains in both engineering and manufacturing contributed to
the improvement in gross margin both year-over-year and quarter-to-quarter.
In the second quarter, approximately 9% to 10% of manufacturing production hours was outsourced.
Production efficiency has improved over the last 12 months, and as a result, the amount of
production hours outsourced for the remainder of the fiscal year is expected to decrease.
-MORE-
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| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
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Page 2 |
| for Second Quarter Fiscal 2008 |
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| October 26, 2007 |
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Selling, general and administrative, or SG&A, expenses increased on an absolute basis to $3.2
million in the second quarter fiscal 2008 compared with $2.4 million in the same prior year period,
but decreased as a percentage of sales to 13.8% in the second quarter compared with 15.0% in the
prior year period. SG&A expense was slightly higher than the previously expected range of $2.8 to
$3.1 million due to higher variable compensation costs associated with higher sales volume and more
profitable projects. For the remainder of the fiscal year, Graham expects quarterly SG&A to be in
the range of $3.0 to $3.2 million per quarter. Operating margin was 29.2% in the second quarter
compared with 5.2% in the same prior year period and 19.2% in the first quarter of fiscal 2008.
The effective tax rate in second quarter of fiscal 2008 was 34% compared with 32% in the prior
year’s second quarter. The full year fiscal 2007 actual tax rate of 12% reflected the benefit of
$1.6 million in research and development tax credits recognized in the fourth quarter of fiscal
2007. These credits, as well as remaining net operating losses, were fully used to reduce taxes
payable in the second quarter of fiscal 2008. Graham expects its effective tax rate for fiscal
2008 to be approximately 34%.
Six-Month Review
Sales for the first six months of fiscal 2008 were $43.0 million compared with $30.5 million in the
first six months of fiscal 2007, a 41% increase. Export sales comprised 43% of total sales for the
six-month period while domestic projects comprised 57% of total sales. Gross profit margin was
38.5% for the first half of fiscal 2008 compared with 24.1% for the same period in the prior year.
The increase in gross margin was due to favorable product mix, material cost management, as well as
to productivity gains in engineering and manufacturing.
SG&A margin for the first six months of fiscal 2008 was 14% compared with 15% for the same period
in the prior year, increasing $1.3 million in absolute dollars to $6.0 million. Net income for the
first half of fiscal 2008 was $7.1 million compared with $1.7 million in the same period the prior
fiscal year, while diluted earnings per share were $1.76 compared with $0.43, in each respective
period.
Balance Sheet and Cash Management
Cash, cash equivalents and investments at September 30, 2007 were $24.1 million compared with
$15.1 million as of March 31, 2007 and $20.2 million as of June 30, 2007. Net cash provided by
operating activities was $4.0 million and $9.0 million in the first quarter and second half of
fiscal 2008, respectively, compared with cash used by operating activities of $215 thousand and
$2.7 million in the second quarter and first half of fiscal 2007, respectively. The $11.7 million
difference between the year-over-year six month periods primarily resulted from higher net income
and greater use of deferred tax assets in fiscal 2008. Remaining net operating loss carry-forwards
and research and development credits reduced current taxes payable for the second quarter.
Capital expenditures in the second quarter of fiscal 2008 were $0.3 million, relatively unchanged
from the same period the prior year, but up from $0.2 million in the first quarter of fiscal 2008.
Four new welding machines were installed in Graham’s Batavia manufacturing facility to improve
manufacturing speed and process, and a multiple spindle drilling machine was rebuilt to improve
quality and throughput. Capital spending was $0.4 million in the first half of fiscal 2008 and is
expected to approximate $1.5 million for the full year.
Outlook
Orders for the second quarter of fiscal 2008 were $20.5 million, a 7% decrease from $22.1 million
in the same prior year period, and down sequentially from $24.8 million in the first quarter of
fiscal 2008. Orders were $45.4 million for the first six months of fiscal 2008, up 8% compared
with the first half of fiscal 2007. Due to the size of ejector and condenser orders, timing of
order acceptance can significantly impact any particular reporting period. Graham does not believe
that quarter-to-quarter comparisons are indicative of future business trends.
At September 30, 2007, backlog was $56.8 million, 26% higher than backlog of $45.0 million at
September 30, 2006. Approximately $50.0 million of orders in backlog are expected to convert to
sales within the next twelve months. Orders in backlog consist of approximately 50% for refinery project
work, 26% for chemical and petrochemical projects and 24% for other industrial and commercial
applications.
-MORE-
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| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
|
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Page 3 |
| for Second Quarter Fiscal 2008 |
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| October 26, 2007 |
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Mr. Lines added, “Our second quarter was exceptional, with efficient production flow and good sales
activity. For the remainder of fiscal 2008, we expect, on average, gross margins to be closer to
35%. Additionally, the third quarter ending December 31, 2007, is typically affected by
seasonality, with the lowest number of available production hours. We therefore expect to see a
corresponding decrease in efficiencies and production in that quarter.”
Mr. Lines concluded, “We continue to see capital project lead times being extended further out as
global demand for resources, equipment and qualified personnel outstrips existing supplies. There
have been some customer delays in accepting equipment ready for shipment because overall project
construction is behind schedule. We have received some requests for engineering orders, where we
design the engineering specifications without a defined equipment delivery date. And, as expected,
some projects that would have represented future orders have been postponed due to critical
resource constraints.
Despite the recent timing issues and subsequent delays, we still believe the underlying factors
driving the current expansion cycle not only remain intact but will actually serve to extend the
cycle even longer, perhaps beyond 2010. Even with these risk factors in mind, we are revising our
revenue expectations upward for fiscal year 2008 to be in the range of $80 to $85 million.”
Webcast and Conference Call
Graham’s senior management team will host a conference call and live webcast today at 11:00 a.m.
EST. During the conference call and webcast, James R. Lines, President and COO, and J. Ronald
Hansen, Vice President Finance and CFO, will review Graham’s financial and operating results as
well as its strategy and outlook. A question-and-answer session will follow.
Graham’s conference call can be accessed as follows:
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• |
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The live webcast can be found at http://www.graham-mfg.com. Participants should
go to the website 10 -15 minutes prior to the scheduled conference in order to
register and download any necessary audio software. |
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• |
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The teleconference can be accessed by dialing 1-201-689-8560 and referencing
conference ID number 258106 approximately 5 — 10 minutes prior to the call. |
The conference call and webcast will be archived and can be reviewed as follows:
| |
• |
|
The webcast will be archived at http://www.graham-mfg.com. A transcript will
also be posted once available. |
| |
• |
|
A replay can be heard by calling 1-201-612-7415, and entering the account number
3055 and conference ID number 258106. The telephonic replay will be available
through November 2, 2007 at 11:59 p.m. Eastern Time. |
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham
Corporation is a global designer, manufacturer and supplier of ejectors, pumps, condensers, vacuum
systems and heat exchangers. Over the past 71 years, Graham has built a reputation for top
quality, reliable products and high-standards of customer service. Sold either as components or
complete system solutions, the principal markets for Graham’s equipment are the petrochemical, oil
refining and electric power generation industries, including cogeneration and geothermal plants.
Graham equipment can be found in diverse applications, such as metal refining, pulp and paper
processing, ship-building, water heating, refrigeration, desalination, food processing,
pharmaceutical, heating, ventilating and air conditioning.
Graham Corporation’s reach spans the globe. Its equipment is installed in facilities from North
and South America to Europe, Asia, Africa and the Middle East. More information regarding Graham
can be found at its website:
www.graham-mfg.com
-MORE-
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| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
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Page 4 |
| for Second Quarter Fiscal 2008 |
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| October 26, 2007 |
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Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,”
“believes,” “could,” and other similar words. All statements addressing operating performance,
events, or developments that Graham Corporation expects or anticipates will occur in the future,
including but not limited to statements relating to anticipated revenues, profit margins, foreign
sales operations, its strategy to build its global sales representative channel, the effectiveness
of automation in expanding its engineering capacity, its ability to improve cost competitiveness,
customer preferences and changes in market conditions in the industries in which Graham Corporation
operates are forward-looking statements. Because they are forward-looking, they should be evaluated
in light of important risk factors and uncertainties. These risk factors and uncertainties are more
fully described in Graham Corporation’s Annual and Quarterly Reports filed with the Securities and
Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of
these risks or uncertainties materialize, or should any of the Company’s underlying assumptions
prove incorrect, actual results may vary materially from those currently anticipated. In addition,
undue reliance should not be placed on the Company’s forward-looking statements. Except as required
by law, the Company disclaims any obligation to update or publicly announce any revisions to any of
the forward-looking statements contained in this press release.
For more information contact:
J. Ronald Hansen, Vice President — Finance and Administration, and CFO
Phone: (585) 343-2216 Email: rhansen@graham-mfg.com
- -OR-
Deborah K. Pawlowski, Kei Advisors LLC
Phone: (716) 843-3908 Email: dpawlowski@keiadvisors.com
FINANCIAL TABLES FOLLOW.
- -MORE-
- -MORE-
|
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| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
|
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Page 5 |
| for Second Quarter Fiscal 2008 |
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| October 26, 2007 |
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Graham Corporation Second Quarter Fiscal 2008
Consolidated Statements of Operations and Retained Earnings
(Amounts in thousands, except per share data)
| |
|
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Three Months Ended |
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Six Months Ended |
|
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|
September 30, |
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September 30, |
|
| |
|
2007 |
|
|
2006 |
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2007 |
|
|
2006 |
|
| |
|
(Amounts in thousands, except per share data) |
|
Net sales |
|
$ |
23,060 |
|
|
$ |
15,903 |
|
|
$ |
43,047 |
|
|
$ |
30,511 |
|
Cost of products sold |
|
|
13,163 |
|
|
|
12,679 |
|
|
|
26,471 |
|
|
|
23,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
9,897 |
|
|
|
3,224 |
|
|
|
16,576 |
|
|
|
7,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
|
42.9 |
% |
|
|
20.3 |
% |
|
|
38.5 |
% |
|
|
24.1 |
% |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
3,174 |
|
|
|
2,392 |
|
|
|
6,022 |
|
|
|
4,685 |
|
Operating income |
|
|
6,723 |
|
|
|
832 |
|
|
|
10,554 |
|
|
|
2,657 |
|
Operating margin |
|
|
29.2 |
% |
|
|
5.2 |
% |
|
|
24.5 |
% |
|
|
8.7 |
% |
Interest expense |
|
|
2 |
|
|
|
2 |
|
|
|
8 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expenses |
|
|
3,176 |
|
|
|
2,394 |
|
|
|
6,030 |
|
|
|
4,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
6,721 |
|
|
|
830 |
|
|
|
10,546 |
|
|
|
2,651 |
|
Provision for income taxes |
|
|
2,299 |
|
|
|
267 |
|
|
|
3,466 |
|
|
|
972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4,422 |
|
|
|
563 |
|
|
|
7,080 |
|
|
|
1,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings at beginning of period |
|
|
25,236 |
|
|
|
18,321 |
|
|
|
22,675 |
|
|
|
17,301 |
|
Dividends |
|
|
(99 |
) |
|
|
(97 |
) |
|
|
(196 |
) |
|
|
(193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings at end of period |
|
$ |
29,559 |
|
|
$ |
18,787 |
|
|
$ |
29,559 |
|
|
$ |
18,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1.12 |
|
|
$ |
.14 |
|
|
$ |
1.80 |
|
|
$ |
.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1.10 |
|
|
$ |
.14 |
|
|
$ |
1.76 |
|
|
$ |
.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
3,944 |
|
|
|
3,891 |
|
|
|
3,934 |
|
|
|
3,878 |
|
Diluted: |
|
|
4,012 |
|
|
|
3,945 |
|
|
|
4,012 |
|
|
|
3,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share |
|
$ |
.025 |
|
|
$ |
.025 |
|
|
$ |
.05 |
|
|
$ |
.05 |
|
|
|
|
|
|
|
|
|
|
|
|
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-MORE-
|
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| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
|
|
Page 6 |
| for Second Quarter Fiscal 2008 |
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| October 26, 2007 |
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Graham Corporation Second Quarter Fiscal 2008
Consolidated Balance Sheets
(Amounts in thousands, except per share data)
| |
|
|
|
|
|
|
|
|
| |
|
September 30, |
|
|
March 31, |
|
| |
|
2007 |
|
|
2007 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
738 |
|
|
$ |
1,375 |
|
Investments |
|
|
23,399 |
|
|
|
13,676 |
|
Trade accounts receivable, net of allowances ($53 and
$48 at September 30, and March 31, 2007, respectively). |
|
|
11,372 |
|
|
|
11,859 |
|
Unbilled revenue |
|
|
5,269 |
|
|
|
4,793 |
|
Inventories |
|
|
3,451 |
|
|
|
4,682 |
|
Prepaid expenses and other current assets |
|
|
1,405 |
|
|
|
354 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
45,634 |
|
|
|
36,739 |
|
Property, plant and equipment, net |
|
|
8,774 |
|
|
|
8,780 |
|
Deferred income tax asset |
|
|
— |
|
|
|
2,901 |
|
Prepaid pension asset |
|
|
464 |
|
|
|
445 |
|
Other assets |
|
|
6 |
|
|
|
13 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
54,878 |
|
|
$ |
48,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
29 |
|
|
$ |
37 |
|
Accounts payable |
|
|
5,325 |
|
|
|
5,143 |
|
Accrued compensation |
|
|
3,626 |
|
|
|
3,205 |
|
Accrued expenses and other liabilities |
|
|
2,154 |
|
|
|
2,048 |
|
Customer deposits |
|
|
4,007 |
|
|
|
6,100 |
|
Deferred income tax liability |
|
|
68 |
|
|
|
87 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
15,209 |
|
|
|
16,620 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
45 |
|
|
|
56 |
|
Accrued compensation |
|
|
286 |
|
|
|
263 |
|
Other long-term liabilities |
|
|
139 |
|
|
|
58 |
|
Accrued pension liability |
|
|
261 |
|
|
|
251 |
|
Accrued postretirement benefits |
|
|
989 |
|
|
|
976 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
16,929 |
|
|
|
18,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $1 par value — Authorized, 500 shares |
|
|
— |
|
|
|
— |
|
Common stock, $.10 par value — Authorized, 6,000 shares
Issued and outstanding, 3,914 and 3,887 shares at
September 30 and March 31, 2007, respectively |
|
|
391 |
|
|
|
389 |
|
Capital in excess of par value |
|
|
10,390 |
|
|
|
10,008 |
|
Retained earnings |
|
|
29,559 |
|
|
|
22,675 |
|
Unearned compensation |
|
|
(34 |
) |
|
|
— |
|
Accumulated other comprehensive loss |
|
|
(2,324 |
) |
|
|
(2,367 |
) |
Notes receivable from officers and directors |
|
|
(33 |
) |
|
|
(51 |
) |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
37,949 |
|
|
|
30,654 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
54,878 |
|
|
$ |
48,878 |
|
|
|
|
|
|
|
|
-MORE-
|
|
|
| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
|
|
Page 7 |
| for Second Quarter Fiscal 2008 |
|
|
| October 26, 2007 |
|
|
Graham Corporation Second Quarter Fiscal 2008
Condensed Consolidated Statements of Cash Flows
(Dollar amounts in thousands)
| |
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
| |
|
September 30, |
|
| |
|
2007 |
|
|
2006 |
|
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,080 |
|
|
$ |
1,679 |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided (used) by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
462 |
|
|
|
442 |
|
Discount accretion on investments |
|
|
(421 |
) |
|
|
(201 |
) |
Non-cash stock-based compensation expense |
|
|
78 |
|
|
|
33 |
|
Gain (loss) on disposal of property, plant and equipment |
|
|
— |
|
|
|
(13 |
) |
Deferred income taxes |
|
|
3,014 |
|
|
|
972 |
|
(Increase) decrease in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
487 |
|
|
|
(1,502 |
) |
Unbilled revenue |
|
|
(475 |
) |
|
|
(2,691 |
) |
Inventories |
|
|
1,231 |
|
|
|
429 |
|
Domestic and foreign income taxes receivable/payable |
|
|
(781 |
) |
|
|
(143 |
) |
Prepaid expenses and other current and non-current assets |
|
|
(268 |
) |
|
|
(138 |
) |
Prepaid pension asset |
|
|
(19 |
) |
|
|
(1,729 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
182 |
|
|
|
1,066 |
|
Accrued compensation, accrued expenses and other current and non-current liabilities |
|
|
474 |
|
|
|
(615 |
) |
Customer deposits |
|
|
(2,093 |
) |
|
|
(240 |
) |
Long-term portion of accrued compensation, accrued pension liability and
accrued postretirement benefits |
|
|
46 |
|
|
|
(30 |
) |
|
|
|
|
|
|
|
Total adjustments |
|
|
1,917 |
|
|
|
(4,360 |
) |
|
|
|
|
|
|
|
Net cash provided (used) by operating activities |
|
|
8,997 |
|
|
|
(2,681 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(447 |
) |
|
|
(668 |
) |
Proceeds from sale of property, plant and equipment |
|
|
25 |
|
|
|
15 |
|
Purchase of investments |
|
|
(37,053 |
) |
|
|
(10,850 |
) |
Redemption of investments at maturity |
|
|
27,750 |
|
|
|
14,000 |
|
|
|
|
|
|
|
|
Net cash (used) provided by investing activities |
|
|
(9,725 |
) |
|
|
2,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
14 |
|
|
|
2,479 |
|
Principal repayments on long-term debt |
|
|
(33 |
) |
|
|
(2,505 |
) |
Issuance of common stock |
|
|
273 |
|
|
|
253 |
|
Collection of notes receivable from officers and directors |
|
|
18 |
|
|
|
13 |
|
Dividends paid |
|
|
(196 |
) |
|
|
(193 |
) |
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
76 |
|
|
|
47 |
|
|
|
|
|
|
|
|
Effect of exchange rates on cash |
|
|
15 |
|
|
|
4 |
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
(637 |
) |
|
|
(133 |
) |
Cash and cash equivalents at beginning of period |
|
|
1,375 |
|
|
|
570 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
738 |
|
|
$ |
437 |
|
|
|
|
|
|
|
|
-MORE-
|
|
|
| Graham Corporation Reports Record Quarterly Net Income of $4.4 Million on Sales Growth of 45%
|
|
Page 8 |
| for Second Quarter Fiscal 2008 |
|
|
| October 26, 2007 |
|
|
Graham Corporation Second Quarter Fiscal 2008
Additional Information
ORDER AND BACKLOG TREND
($, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
Q107 |
|
|
|
Q207 |
|
|
|
Q307 |
|
|
|
Q407 |
|
|
|
FY 2007 |
|
|
|
Q108 |
|
|
|
Q208 |
|
|
| |
|
|
|
6/30/06 |
|
|
|
9/30/06 |
|
|
|
12/31/06 |
|
|
|
3/31/07 |
|
|
|
3/31/07 |
|
|
|
6/30/07 |
|
|
|
9/30/07 |
|
|
| |
Orders |
|
|
$ |
20,032 |
|
|
|
$ |
22,125 |
|
|
|
$ |
17,127 |
|
|
|
$ |
27,256 |
|
|
|
$ |
86,540 |
|
|
|
$ |
24,843 |
|
|
|
$ |
20,528 |
|
|
| |
Backlog |
|
|
$ |
38,642 |
|
|
|
$ |
45,000 |
|
|
|
$ |
47,597 |
|
|
|
$ |
54,184 |
|
|
|
$ |
54,184 |
|
|
|
$ |
59,221 |
|
|
|
$ |
56,839 |
|
|
| |
SALES BY INDUSTRY
($, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
Q107 |
|
|
|
Q207 |
|
|
|
Q307 |
|
|
|
Q407 |
|
|
|
FY 2007 |
|
|
|
Q108 |
|
|
|
Q208 |
|
|
| |
|
|
|
6/30/06 |
|
|
|
9/30/06 |
|
|
|
12/31/06 |
|
|
|
3/31/07 |
|
|
|
3/31/07 |
|
|
|
6/30/07 |
|
|
|
9/30/07 |
|
|
| |
Refining |
|
|
$ |
3.9 |
|
|
|
$ |
5.2 |
|
|
|
$ |
6.0 |
|
|
|
$ |
7.4 |
|
|
|
$ |
22.6 |
|
|
|
$ |
9.6 |
|
|
|
$ |
11.9 |
|
|
| |
Chem/ Petrochemical |
|
|
$ |
7.2 |
|
|
|
$ |
6.6 |
|
|
|
$ |
4.2 |
|
|
|
$ |
7.7 |
|
|
|
$ |
25.6 |
|
|
|
$ |
4.6 |
|
|
|
$ |
0.4 |
|
|
| |
Power |
|
|
$ |
0.7 |
|
|
|
$ |
1.0 |
|
|
|
$ |
1.1 |
|
|
|
$ |
0.4 |
|
|
|
$ |
3.2 |
|
|
|
$ |
0.8 |
|
|
|
$ |
6.4 |
|
|
| |
Other |
|
|
$ |
2.7 |
|
|
|
$ |
3.0 |
|
|
|
$ |
3.1 |
|
|
|
$ |
5.1 |
|
|
|
$ |
13.9 |
|
|
|
$ |
4.8 |
|
|
|
$ |
4.2 |
|
|
| |
SALES BY REGION
($, in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
Q107 |
|
|
|
Q207 |
|
|
|
Q307 |
|
|
|
Q407 |
|
|
|
FY 2007 |
|
|
|
Q108 |
|
|
|
Q208 |
|
|
| |
|
|
|
6/30/06 |
|
|
|
9/30/06 |
|
|
|
12/31/06 |
|
|
|
3/31/07 |
|
|
|
3/31/07 |
|
|
|
6/30/07 |
|
|
|
9/30/07 |
|
|
| |
North America |
|
|
$ |
7.6 |
|
|
|
$ |
6.8 |
|
|
|
$ |
9.1 |
|
|
|
$ |
12.2 |
|
|
|
$ |
35.8 |
|
|
|
$ |
11.7 |
|
|
|
$ |
17.8 |
|
|
| |
Middle East |
|
|
$ |
4.8 |
|
|
|
$ |
4.5 |
|
|
|
$ |
1.8 |
|
|
|
$ |
4.1 |
|
|
|
$ |
15.3 |
|
|
|
$ |
4.2 |
|
|
|
$ |
0.5 |
|
|
| |
Asia |
|
|
$ |
1.1 |
|
|
|
$ |
3.9 |
|
|
|
$ |
2.2 |
|
|
|
$ |
4.0 |
|
|
|
$ |
11.2 |
|
|
|
$ |
2.5 |
|
|
|
$ |
2.1 |
|
|
| |
Other |
|
|
$ |
1.1 |
|
|
|
$ |
0.7 |
|
|
|
$ |
1.4 |
|
|
|
$ |
0.5 |
|
|
|
$ |
3.5 |
|
|
|
$ |
1.6 |
|
|
|
$ |
2.7 |
|
|
| |
###